Things have been going well for your Maine-based small business, and you are considering joining forces with another business for the benefit of both of you. This can be the most efficient way to grow, as long as you plan carefully. Often the reason for failed mergers and acquisitions is management problems, not market conditions.  Continue Reading »

In 1993, the Supreme Court positioned judges as “gatekeepers” against “junk science” in Daubert v. Merrell Pharmaceutical, Inc. (509 U.S, 579). Then, in 1999, Kumho Tire Company v. Carmichael (526 U.S. 137) extended the scope of Daubert beyond scientific testimony to other academic disciplines, including finance and appraisal, accounting, statistics, and economics. Daubert hearings are  Continue Reading »

In re Sunedison, Inc., 2016 Bankr. LEXIS 2959 (Aug. 11, 2016). When a company declares bankruptcy, investors often question the accuracy of post-petition valuations offered by other stakeholders. But, as a recent ruling in a major bankruptcy case shows, investors rarely succeed in convincing the court to appoint an equity committee to ensure their interests  Continue Reading »

A tax assessment by the IRS is generally presumed to be correct, but a taxpayer can overcome the presumption with proof. However, that situation is reversed when the IRS asserts fraud. In those instances, the IRS must prove, by clear and convincing evidence that fraud exists. Badges of Fraud There is a potential for criminal as well  Continue Reading »

The top line of your company’s income statement is revenue. So, it tends to receive a lot of attention from investors, lenders and other stakeholders. Why? It’s a telltale sign whether your company is growing or declining based on changes in revenue. Moreover, changes in the composition of revenue can provide insight into your strategic plans.  Continue Reading »

The next federal highway use tax return is due on August 31, 2017, so the IRS wants to remind truckers and other owners of heavy highway vehicle. Generally, the deadline applies to IRS Form 2290 and the accompanying tax payment for the tax year that begins on July 1, 2017, and ends on June 30, 2018.  Continue Reading »

In July, the Social Security Board of Trustees released its annual report on the long-term financial status of the Social Security Trust Funds. For years, people have questioned the viability of the Social Security system going forward. The report projects that the combined asset reserves of the Old-Age, Survivors and Disability Insurance (OASDI) Trust Funds will  Continue Reading »

Baumbouree v. Baumbouree, 2016 La. App. LEXIS 1388 (July 13, 2016). In a Louisiana divorce case, the trial court applied the value stated in a stock agreement the physician owner-spouse had entered into with his firm in the context of partition. In her appeal, the wife objected that by doing so the trial court had  Continue Reading »

When a business is going through litigation, the job of a valuation expert is to provide an independent opinion as to the value of the business interest involved. The other party will also offer their idea of the business’ value, and often the two numbers are very far apart. The values usually seem to be  Continue Reading »

Under the federal tax code, there’s a fine line between businesses and hobbies. You may think of that unincorporated sideline activity you engage in an— such as a marketing director by day and an artist on the nights and weekends —as a business and hope to deduct any losses on your personal tax return. But  Continue Reading »